CashNews.co
New Delhi: The shares of Bajaj Housing Finance listed on the exchanges with a premium of 114% on Monday. The stock debuted at Rs 150 on both BSE and NSE against an issue price of Rs 70.
Ahead of the listing, the company’s shares traded with a GMP of 120% of the issue price. The Rs 6,560 crore IPO of Bajaj Housing Finance is the largest of the year so far and was subscribed nearly 67 times the shares on offer.
With Assets Under Management (AUM) of Rs 97,100 crore as of Q1 FY25, the company is the largest non-deposit-taking housing finance company (HFC) backed by Bajaj Finance. From FY22 to FY24, AUM increased by 31%, while profit grew by 56%.
“Investors should consider a medium- to long-term investment in Bajaj Housing Finance due to its strong growth, extensive presence in the housing finance industry, reputable group and management heritage, and competitive valuation compared to peers,” said Master Capital Services.
“Bajaj Housing Finance has demonstrated consistent growth in both revenue and profit, showcasing favourable financial metrics. The combination of strong financials, a reputable brand, and immense investor interest positions Bajaj Housing Finance for a potential success story,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
The company plans to use the net proceeds from the public offer to address future business needs related to onward lending.
Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank since September 2015. It provides customized financial solutions for purchasing and renovating residential and commercial properties.
It has also been identified and categorized as an upper-layer NBFC by the RBI in India. Its comprehensive mortgage products include home loans, loans against property, lease rental discounting, and developer financing.
The company primarily focuses on individual retail housing loans, complemented by a diverse range of commercial and developer loans, catering to everyone from homebuyers to large developers.
For the fiscal year 2023-24, the housing lender reported a net profit of Rs 1,731 crore, a 38% increase from Rs 1,258 crore in FY23. Net income for the same period rose 34% year-on-year to Rs 7,618 crore.